All Forum Posts by: Cody Bradley

@Bridget Poston

I just usually put in my offer to purchase "seller to pay up to $4000 towards buyers points, pre-paids and closing costs". Your realtor should know how to negotiate that for you!

So on most mortgages if you put 20% down you avoid PMI. You need 20% equity either way to drop this. But with FHA if you put 3.5% down the pmi never goes away unless you refinance. However if you put 10% down, PMI can drop after 11 years into the loan without refinancing. At least that's my understanding. Anyone feel free to correct me if I'm wrong! That's just what I read and what I was told by my lender.

@Bridget Poston

I think I messed that part up about PMI. I meant 10% down after 11 years.

@Bridget Poston

I used FHA. From my understanding they do like to see 2 years but I think some lenders will work around that if everything else checks out. Just ask the lender before they run your credit that way you dont hurt yourself by having it ran. FHA was nice because its 3.5% down but closing costs were high. I was fortunate enough to get my seller to pay $4000 in closing costs which gave me less equity to start but it was better than paying out of pocket in my opinion.

Another thing with FHA is you will always have PMI when putting the 3.5% down. It doesnt go away when you hit 20% unless you put 11% down and wait 10 years. I'm not a lender but I believe that's how it goes.

I also got burned because I overlooked the box on the property disclosure that said it was in a flood zone.. it does not flood in this area but since it's in FEMAs flood plane, you need to carry gov. Backed flood insurance which is higher priced than private flood insurance. I found a private policy for around 500 a year but FHA does now allow that so I had to pay around $1400 a year for that. That drove my closing costs up higher. I did represent my self as the agent tho and I got a commission back so that offset the costs some!

@Bridget Poston I found this one on the MLS. Nobody was biting on it at first because the tenants were being difficult and not letting anyone in. I was able to get into each side at different times and both tenants actually got evicted before I got possession.

@Dillon Y. Hey, thanks! That makes sense about waiting to get more equity. I hadn't considered that. Right now I have flood insurance so I wondered also if getting out of FHA would allow for private flood insurance instead if the government backed stuff.

Definitely going to see how stuff goes tho!

@Bridget Poston sounds like you have the right idea!

I'm in Ohio also and I just bought my first duplex to live in one side and rent the other. I'm a Realtor also but I'm more in the Sidney area.. you'll have to let us know how things come along for you guys!

Hey Everyone, My name is Cody. I just bought my first duplex in Ohio. I used FHA with 3.5% down and I will occupy one side. I'm currently painting and doing some finishing touches before I move in. The other side is not rented yet, but I expect to get around $700 for one side and $750 for my side when I move out.

I know with FHA you are supposed to stay at the property for one year. I have my eye on a 3 unit property that I would like to purchase with the same method if its still available when the time comes. What would be the best route to finance this? Would I refinance out of my FHA then get another FHA loan? or go conventional first then refinance? Is there a time gap required between these? I don't want to get ahead of myself but I want to be prepared for my next step.

Hey Bob! I'm not familiar with the Cleveland area but I do business around Sidney Ohio if you need any help around this way, I'd be happy to give you my thoughts! What kind of return are you looking for?

Are you still using Cozy.co? I was reading on their website it takes 5 business days for bank account transactions to post and 3 for cards. Does this mean you don't know if they made the payment or you just dont get the money for 5 days? Are there ever fees for this service or can you continue free?

In your experience, when getting a HELOC for your primary residence or investment property, do you think I'd be more likely to get a higher appraisal from a local lender or an online lender?